Today we are very excited to introduce you all to one of the most highly anticipated new feature for OolongSwap — veOLO!
TLDR? Here’s the takeaway
In sum, if you want to earn more farming rewards with veOLO:
- You should deposit more LP tokens
- You should stake more OLO and also stake them for a longer period of time to earn more veOLO
- veOLO allows you to earn extra OLO in LP farming
If you don’t do anything:
- You can continue to earn the current farming rewards
- HOWEVER, your yield will be diluted (relatively) by people who farm with veOLO
What is veOLO?
veOLO (vote escrow OLO) is the mechanism of locking the OLO for a period of time. The longer you lock the OLO for, the more veOLO you receive, and the more veOLO you own, the more yield farming rewards you earn.
The main purposes of veOLO are the following:
- To incentivize OLO tokens purchase
- To encourage long-term staking
- To make farming TVL directly related to staked token
How does it work?
With the new veOLO tokenomics update, our farming emissions will be split into 2 kinds of pools: base pools and boosted pools.
The base pool works just like the current farming pools, where rewards are simply emitted to users based on their share of the aggregate deposits of the pool.
Depositors can earn additional rewards from the boosting pool by staking OLO and receiving veOLO tokens.
The boosted pool blurs the line between farmers and OLO holders, and incentivizes farmers to hold more OLO as staking OLO will directly increase farming yields. And lack of staked OLO will result in decreased farming yields.
Here are simple breakdown of how veOLO works:
- Staked OLO earns veOLO over time
- veOLO is earned at a consistent and constant rate
- veOLO applies farm boosts to selected farms
- The amount of veOLO you have will determine your share of the farm boost rewards
- Upon unstaking OLO, user’s veOLO balance drops to 0
- veOLO is not transferable nor tradable
The weight function for veOLO used by rewards pools is calculated using this formula below:
List of farms that will receive veOLO boost:
- List of farms with veOLO boost will be revealed sooon!
Users will need to migrate from these existing Farms, into new farms that will facilitate the veOLO boost.
What will Happen with YOLO?
YOLO will still remain, and will be catered to users with appetite for single sided staking yields.
OolongSwap is the biggest DEX on Boba Network, a layer-2 Ethereum scaling solution. As Boba’s first native AMM, it is Oolong’s mission to create the best exchange, best user experience, and deepest liquidity on Boba as our motto is “more to earn, less to spend”. Aside from the regular DEX features, we have also introduced features such as dynamic pair fees to offer users lower trading slippage, multea farm for users to earn double the rewards with the same investment capital and PCV and bonding to offer a sustainable future for Oolong. Our vision is to become the gateway between Boba and the rest of DeFi world, expanding the Boba ecosystem and help new and experienced DeFi users alike find their crypto home.